Document o9J22zqoo02O4z8vvQOwbqq0o

913 864 693 485 864 809 455 .168 .302 .000 .000 Xso tp to redit reafjniy. then ;ility 11 be dis-nary redit es ts .nanruied peetec.u* orthbor- PLAINTIFF'S EXHIBIT "7 cX.) MOODY'SMNDUSTRIAL MANUAL HI 6883 rawing From other sources in significant amounts except for equipment purchases. Co. has granted Hens on substantially all of its assets to secure its obligations under the amended Credit Agreement. In addition. Co.'s subsidiaries other than an immaterial utility subsidiary have guaranteed Co.'s obli gations under the amended Credit Agreement und. sub ject to certain limitations, have granted liens on substan tially all of their assets to secure their guarantees. Capital Stock: 1. Thousand Trails. Inc. (DE) common; par $0.01. \UTH - 15.000.000 shs. OUTSTG - iun. 30. 1998 7.347.083 shs; par S0.01. WARRANTS - June 30, 1998. warrants to purchase 491,697 shs. of common stock as follows; 1. 481,527 shs. at $4.24 per sh.. expiring June 30. 1999. 2. 10,170 shs. at SI.625 per sh.. expiring March 3i. 1999. OPTIONS - 1998 Options outstanding, beginning of year............ 1,224.495 Options granted . T............................................ Options canceled .............................................. 25.OCX) (7.501) Options exercised.............................................. (50.4991 Options outstanding, end of year ................... Options exercisable, end of year....................... 1.191.495 1,152.332 Shares available for grant, end of vear ............ 50.200 LISTED - American : TRV ' PRICE RANGE- 1997 1996 1995 1994 High ....................... .*> iv,* % 2 Low......................... 4i:U Va ^ THREE-FIVE SYSTEMS, INC. History: Incorporated in Delaware on Feb. 13. 1990 as TF Consolidation, Inc. to effect a merger with Elec tronic Research Associates. Inc. Present name adopted on May i. 1990. the effective date of the merger. On Apr. 1. 1987. Co. closed its manufacturing facility in Troy. N.Y. In 1994. Co dissolved its wholly-owned subsidiary. Certified Electronics Ltd. (CEL). In 1995. Co. formed a wholly-owned subsidiary-. Three-Five Systems Pacific, Inc. (Pacific*. In May i998. Co. purchased a 20% interest in Siliscape Inc., for an undisclosed amount. The completion date of the transaction was not released. Attempts to contact management from May 15. 199S through May 19. 1998 were unsuccessful Further details were unavailable at the time. Business: Co. designs and manufactures display modules for use m the end products of original equip ment manufacturers, or OEMs. Co. currently specializes in custom liquid crystal display, or LCD. components and technology. Co.' s LCD modules are used in mobile handsets and other wireless communication devices as well us in office automation equipment, industrial con trols. medical equipment, and instrumentation. In addi tion to Co.'s traditional LCD module business. Co. is pursuing the commercialization of its liquid crystal on silicon, or LCoST. microdisplays. Properties: Co. owns and occupies a 97.000 square foot facility in Tempe, Arizona, which houses its U.S.bused manufacturing operations; its research, develop ment. engineering, design, and corporate functions; and LCD glass manufacturing operations. Co. leases approximately 3,500 square feet of office and warehouse space in Swindon. United Kingdom, where it maintains its Euiopean administrative offices and a distribution warehouse. Co. leases approximately 60.000 square feet of manu facturing space in Manila, the Philippines. Co. owns and occupies a 46.000 square foot facility in Beijing. China, including 29.000 square feet of manu facturing space. Subsidiaries Three-Five Systems. Ltd. (United Kingdom) Three-Five Systems Pacific. Inc. (Philippines) Three-Five Systems (Beijing) Co.. Ltd. (China (Peoples Rep. Of)) Officers Jack L. Saltieh. Pres., C.E.O. Jeffrey D. Buchanan. Exec. V.P.. Fin. Admin.. Legal. C.F.O.. Trease.. Sec. Carl E. Derriugton. V.P.. Chief Manuf. Officer Robert L. Meicher. Chief Tech, officer Robert T. Berube. Corporate Contr. . Jack L. Saltieh David C. Mulmbcrg Kenneth M. Julian David P. Chavoustie Directors Jeffrey D. Buchanan Gary R. Lons Thomas A. Werner Burton E. McGiilivray Auditors: Arthur Andersen L.L.P. General Counsel: O'Connor. Cavanagh. Anderson. Westover. Killingsworth & Beshears. PA Shareholder Relations: Peg Breen Gusieh. Investor Relations Tel.: 602-496-0035 No. of Stockholders: Mar. 10. 20H). *08 No. of Employees: Dec. 3i. 1999. 21 14 Address; 1600 N. Desert Drive. Tempo. AZ 85281 1230 Tel.: 602 3X9-8600 Fax: 602 3X9-8X36 Web: vvww ihrcofive.com Consolidated Income Account, years ended Dec. 31 (S000): 1999 01998 01997 (revised) (revised) Net sales . . . 147.408 95.047 84.642 Cost of sales . 117.583 76.149 64.760 Selling, gen & admin exp. 11.170 7.334 6.557 Research & devel 8.745 7,159 5.106 Tot cost & ^xps. 137,498 90.642 76.423 Oper inc........... 9.910 4,405 8.219 Interest, net ... cr51 cr75 cr548 Other rev. /(exps). net . . Tot other income dr69 drl 17 dr 190 (expense) . . . dr!8 dr42 358 Inc bef inc tax . . 9.892 4,363 8.577 Prov for (ben from) inc tax . . Common shares (000): Net income (loss) Avg shares 6.924 1.773 2.590 3 334 ' 5,243 ' outstg-basic . 10.375 010,185 10.472 Avg shares outstg-diluted 10.670 010,403 10,787 Yr end shares outstg........... 09.340 _ 10.539 Net inc per shbasic ........... 0SO.26 S0.5G Net inc per shdiluted......... 0SO.25 s0 49 Tot no of employees . . 02.114 0867 0459 Tot no of stkhiders .... 000808 001.100 001,160 No of beneficiary stkhiders......... Deprec &. amort 5.898 006.000 4,693 ' 4.135 C_O__R_e_c_la_s_s_i_fi_ed_to conform with 1999 presentation 0 Adjusted for 33.3% stock dividend. Dec. 20. 1999 0As is 0As is liiAs of March 6. 1998 ffiAs of March 8. 1999 0As of Mar. iO. 2000 _K Approximate Consolidated Balance Sheet., as of Dec. 31 ($000); Assets; Cash &; cash equivs .... Accts receivable, net . . . Raw mater..................... Work in process........... Finished goods.............. Invent-net ..................... Defer tax assets.............. Other curr assets........... Tot curr assets............ Buildings & improve . . . Fum & equip................ Gross prop pit Sc equip . Accum deprec .............. Prop pit & equipment, net . Other assets................... Tot assets ................ Liabilities: Accts pav....................... Accmed liabil.............. Curr tax pav.................. Curr port of long-term 1999 45.363 20,886 9,554 1.336 1.454 12.344 3.231 1.047 82.871 16.411 47.036 63.447 22.901 40.546 3.513 126.930 13.450 7,526 1.042 01998 (revised) 4.946 18.60! 9.367 1.459 1.667 12.493 2.680 2.313 41.033 13.03! 37.324 50.355 17.041 53.314 3.557 ''7.904 10.649 4.673 235 65! Tot curr liabil Long term debt . Defer rax liabil . Com stk . Addit paid-in cap . . Retain earn.............. Cum transl adj .... Treas stock, at cost . 22.018 3.692 126 67.388 33.702 cr7 3 Tot stkhiders eq. . 101.220 COReclassified to conform with 1999 presentation 16.208 7.444 3.J56 106 32.484 26.823 cr8 8.325 5 1.096 Line of Credit: In November 1998, the Company entered into a commitment from Imperial Bank and the National Bank of Canada for a S25.0 million credit facility. This credit facility consists of (i) a $15.0 million revolving line of credit for general corporate needs, and tn> a SI0.0 million term loan, which provided available funds to repurchase a portion of the Company's com mon stock. The Company must apply all proceeds from the sale of any treasury stock to the outstanding princi pal balance of the term loan. On January 21. 2000, the Company entered into a new $25.0 million unsecured revolving line of credit with Imperial Bank, which matures on January 19. 2001. This line of credit bears interest at the bank's prime rate, or at the LIBOR base rate plus 1.5*%. and is payable monthly. The new revolv ing line of credit contains restrictive covenants that include, among other things, restrictions on the declara tion or payment of dividends and the sale or transfer of assets. The new revolving line of credit facility also requires the Company to maintain a specified net worth, as defined, to maintain a required debt to equity ratio, and to maintain certain other financial ratios. The credit facility contains restrictive covenants that include, among other things, restrictions on the declara tion or payment of dividends and the amount of capital expenditures. The credit facility also requires the Com pany to maintain a specified net worth, as defined, to maintain required debt to equity ratio, and to maintain certain other financial ratios. Capital Stock: l. Three-Five Systems, Inc. com mon: par $0.01. AUTH - ! 5.000.000 shs. OUTSTG - Dec. 3t. 1999 1 2,572,365 shs; par SO.Oi. STOCK SPLITS - $0.01 par shs. split 2-for-1 on May 4. 1994; 33.3% stock dividend Dec. 20. 1999. OPTIONS - Dec. 31. 1999, options outstanding. 1.156.906 shares: available for issuance under the 1994 Non-Employee Directors Stock Option Plan, 66,667 shares. TRANSFER AGENT - Bank of New York. New York, NY. LISTED - New York : TFS PRICE RANGE - 1999 1998 1997 19% 1995 Hiah ....................... 4lfc 23^ 26% 22% 38"^ Low.............. ... 5%. 6%. im 8* 16 0 Bid prices. 53 ASE. OFFERED - (1,060.000 shs.) at $50.00 per sh. (pro ceeds to Co. & selling stockholder, $47.13 per sh.) on -s^ar' 16, 1994 thru The Chicago Corp., Kemper Securities. Inc. und associates. Proceeds of 500.000 shs. for Co. account to build and equip Co.'s new facility, to purchase capital equipment for manufacturing operations in the United States and the Philippines, and to provide additional working capital. Offering contained an over-allotment of up to 159,000 shs. (2.300.000 shs.) at $19,375 per sh. on Sept. 30. 1999. proceeds from the offering are estimated to be S36.6 n,ilUon- TI GROUP PLC (UNITED KINGDOM) History: Registered in England in 1919 as Tube Investments Ltd.; present name adopted May 24, 1982. In April 1969, Co. acquired Vero Machine Toot Co. Ltd. (now Churchill Vero Ltd.). In June 1969, Co. acquired United Flexible Metallic Tubing Co. Ltd. for L3.648.000 nominal 6^% conv. unsecured loan stock. In July 1969. Co. acquired Coventry Gauge Ltd. for L6,817.000 nominal of 6 conv. unsecured loan stock. In Dec. 1969. Co. acquired The Cyril Bath Company (USA) through Churchill-Froriep Corp. for S2,800.000 in cash. In early 1970. a subsidiary of Co. acquired Steel Ser vice Sc Engineering Lid., in Hamilton. Ont., Canada. An additional 11 domestic cos. were acquired during the year. In Aug. 1970. Co. sold Churchill Tools Sc Services, Birmingham to Standard Pressed Steel Co. (USA) for L2.000,000. During 1972. Co. acquired the following companies Healy of Leicester Ltd.: Lines Bros. (Canada) Ltd. Raleigh Industries (Australia) Ltd.; John Elwell Ltd. Becker Equipment Sc Lifts Ltd.; and Clang Ltd. Beginning 1973, Co. acquired 51% of Allen West Sc Co. Ltd. General Electric Co. owns the remaining 49%. In May 1981. Co. acquired King Fifth Wheel Co. In Jan. 1986. Co. sold the V.L. Churchill group to Sealed Power Carp. On June 12, 1986, Co. acquired Abar Ipsen Interna tional for US$12,500,000. On Dec. II. 1986. Co. sold Russell Hobbs andTower. On Feb. 20. 1987. Co. acquired Amico Inc. for L27.000.000. On April 3. 1987. Co. sold Raleigh and the other Group cycle interest for LJ8.000.00Q. Co. also sold TI Domestic Appliances Ltd., the holding company of Glow-worm and Parkray. to Hepworth Ceramic Hold ings PLC for L63.500.000 cash. On Sept. 22. 1987, Co. acquired HoudaiUe Industries Inc. In Aug. 1987. Co. acquired 49% of Fulton from ITT for L4.300,000. In 1987. Co. acquired John Crane, a manufacturer of mechanical seals, and disposed of other business activi ties. On Jan. 22. 1988. Co. disposed of the Non-Crane Businesses which were acquired in Sept. 22. 1987 as part of the acquisition of Houdaille Industries Inc. In Mar. 1988. Co. disposed of TI Robertson for L2.000.000 and TI Serco Corporation (Canada) for L2.500.000. In Apr. 1988. Co. acquired Bundy Corporation for *.86,000.000. In May 1988, Co. disposed of Cold Drawn Tubes and Seamless Tubes for L4,000.000. In Aug. 1988, Co. disposed of TI Chesterfield for L7.000.000. in Oct. 1988. Co. acquired Thermal Scientific for L72,500,000 and simultaneously disposed of its Carbolite and Betol subsidiaries for L6.500.000. In Nov. 1988. Co. disposed of TI Flexible Tubes for L 10.000.000. In Dec. 1988. Co. acquired Ropac SA for L6.000.000 and disposed of Cheswick and Bainbridge for LI 10.000,000 and Standard Tube Canada for L31.500.000. During 1989, Co. acquired Mannesmann's 60% con trolling share in Mecano-Bundy. In Jan. 1989. Co. disposed of Thermal Scientific sub sidiaries Dartec and Rosund Precision for L3.700.000. On Feb. 16, 1989. Co. disposed of The Bundy Per formance Plastics businesses for L47.500.000. In Mav 1989. Co. acquired the remaining 60% of Mecano-Bundy for L22.000.000. In June 1989. Co. acquired PEMSA for L-LOOO.OOO and disposed of Thermal Scientific subsidiaries Unipiex Profiles. Killion Extruders. Stanton Redcroft and Omnitherm for L6.000.00CI. 6884 MOODY'SINDUSTRIAL MANUAL In Aug. 1 989. Co disposed of AP Amortiguadores for L36,00O.(K)O. In Oct. 1989. Co. acquired Lewis & Saunders for L13.0OO.CKM) and disposed of Ebtec Belts & Sciences for L2.400.000. In Nov. 3 989. Co. acquired John Crane Sweden for L2.9O0.OOO and disposed of Tl Nihon for L4.000.000. In Jan. J 990. Co. sold Tl Con for an aggregate consid eration of L3 3.500.000. In Feb. 1990. Co acquired Fouquet SA for FFr24,000.000. In Mar. 1990. Co. acquired the remaining 50% of Bundy-Usi International partnerships in USA and Canada. 2n Apr. 1990. Co. acquired the remaining 51 % of John Crane Venezuela for USS4.000.000 and also Bundy Colombia tor USS3.000.000. In Mav 3 990. Co. acquired 60% of Magnetic Bearings Inc. for USS2.000.000. In Aug. 1990. Co. acquired Lemco for USS3,000,000. In Oct. 3990. Co. acquired the remaining 50% of John Crane Mexico for USS4.1KX1.000. !n June 1991. Co. acquired Huron Products Industries Inc. for L29.000.000. In July 1991. Co. acquired the Marine Seals business of Dover Corporation comprising: 50.14% of Dover Japan Inc. for L25.000.000: Waukesha Marine Seals (USA) for LI4.000.000: and 66.67% of Waukesha-Lips VOF (Netherlands) for L9.000.0Q0. In Oct. 1991. Co. acquired Belfalb for LH.OOO.OOO. In Nov, 1991. Co. acquired Cvclam for L 14.000.000. In 3991. Co. acquired Radcliffe Engineering and US Plastics. On June 10. 1992. C'o. acquired the Dowty Group through the issue of approx. L5OG.0OO.OOO in new Co. shs. On Oct. 24. 1992. Co. sold its Thermal Equipment business. In Jan. 1993. Co. acquired 51% of Bunds India for Ll.OOO.OOU. ' In Mas 1993. Co. acquired Bundv Venezuela for L4.500.00U. ' In Sept. 1993. Co. sold Down Fuel Svstems for Li 8.900.000, '` In Sept 1993. Co. disposed of Dowty Information Technology lot L50.000.(K)0. In Oct. 1993. Co. sold Dowtv Electronic Svstems for L40,000.000. In Nov. 1993. Co. disposed of Ti Interlock and Wich ita Co. for L4.000,000. tn June 1994, Co. disposed of Dowtv Butteries for L6.500.000. * In Sept. 1994. Co. disposed of Mecuno-Simmonds for LI,500,000. In Oct, 1994 Co. acquired 2593 of Technoflow lor L5.000.tKX), In Dec. 1994, Co. disposed of 5% of Japan Marine Technologies for L9.900,(XK) and acquired 759? of Bundy Krt (Arkus) for L400.000. On Jan. 31. 1995. the Group acquired a further inter est in Technoflow GmbH, increasing iLs proportion of the nominal value of share capital in issue to 62.553. In Mar. 1995. Co. disposed of Norson Power Ltd. In June 1995. Co. disposed of Thermopo) Inc. for L500.000. In Julv 1995, Co. acquired 5093 of Klockner-Dowtv GmbH for LI.800.000 and 1093 of Bundy Tubine Co. (Australia) Pty. Ltd. for L4.7(X).(KX). On Jan. 31. 1996. Co. disposed of Tl Desford Tubes Ltd., Hollow Extrusions Ltd: and TI Matrix Engineering Ltd. to The Hav Hall Group Ltd. for a consideration of L44,200.000 in cash. In Jan. 1996, Co, acquired the remaining 37.593 of Technoflow (Germany and Spain) for L8.MKl.000. In Mar. 1996. Co. acquired the remaining 4091 inter est in John Crane Sigma (Czech Republic) for a consid eration of L500.000: as well a further 33.393 of John Crane Tianjin Seals (China) for a consideration of L400.000. ' In July 1996. Co. acquired Bundy South Africa for a consideration of L7.300.000. In Aug. 1996. Co. acquired Bundy Brazil Refrigera tion for a consideration of L16.100.000. In Sept. 1996. Co. disposed of Accles & Pollock fora consideration of LI. 100.000 and Apollo Ltd., Apollo Golf Inc. and Reynolds 531 Ltd. for a consideration of L3.600.000. * In Oct. j 996. Co. acquired tire remaining 25% interest in Dowty Polypac for a consideration of L8,700,000, and the remaining interest in Bundy Tubing Co. (Austra lia) Pty. Ltd. Co. also increased its investment in Korea Bundy Corp. from 15% to 3953 for a consideration of LI 2,800.000. In Nov. 1996, Co. acquired Forsheda AB for LI8L600.000. In Dec. 31. 1996. Co. disposed of 2093 interest in Usui Bundy Tubing (Japan) for u consideration of'L6.00<).(M)0 and acquired the remaining 25% interest of Bundy Hun gary for a consideration of LI00.000. On Jan. 1. 1998. the Polymer Engineering business of Co.'s John Crane Group was separated to form Co.'s fourth core business, and was renamed Forsheda Poly mer Engineering Group. In Feb. 1998. Co acquired Safemalic for LIKA mil lion cash, with additional payments of approx. L7.0 million pov.ibh due. depending on the performance of the business prior to Dee. 31. 1999 In Feb. 1998. C'o. disposed of Thermal Processing Group tor L ! 8.5 million. in Feb. 1998. Co. acquired Seulol Marine Products for L2.5 million in cash. On Apr. 2. 1998. Co. purchased the EG&G Sealol Industrial Seals Division. Cranston. Rhode Island. Terms of the transactions were not disclosed. In Apr. 1998. C'o. acquired Sealol Industrial for L6G.0 million cash. In Apr. 1998, Co. disposed of Belfab to EG&G for L27.3 million in cash. In May 1998 Co. acquired S&H forL202.K million in cash. In May 1998. Co. acquired 41.2% of Japan Marine Tehcnologies for LI0.1 million in cash, increasing the Groups shareholdings to 91.3%. On June 29. 1998. Co. acquired the remaining 70% of Lips Untied BV t`Lips') of Holland, a supplier of marine propulsion systems. The total acquisition cost of Lips is NLG 326 million (L96.G00.OOO). including the 30% interest acquired in January' 1998. Lips will be integrated with Co.'s global John Crane business. in June 1998. Co. disposed of the 50% stake in Messiet-Dowty and the 100% ow ned landing gear repair and overhaul business for L16K.0 million in cash after adjustment for the net debt in Messier-Dowty. In July 1998. Co. acquired EIS Group P.L.C. for L270.3 million comprising of 1.4 million shares of 25p each of Co.'s ordinary shares. L16.0 million of Co.'s loan notes and L245.7 million in cash. In Sept. 1998. Co. disposed of CF Taylor Aircraft Galleys for LJ4.0 million in cash. On Mar. 22. 1999. Co. acquired Tri-Manufacturing from GE Aircraft Engines for $58 million u:> be paid in cash and purchased free of debt. The acquisition w ill be incorporated into Dowty's Turbine Engine Components business with an estimated one off cost of S3 million. In March 1999. Co. acquired Kenmore ltaliana for a consideration of L20 million. On June 17. 1999. Co. acquired Walbro Corp. for S20.00 per share. In Feb. 1999. Co. disposed Industrial Machinery for a consideration of L2 million. In June 1999. Co. disposed Aircraft Spares and Distri bution for a consideration oi L12 million. Business: Co. is an international engineering group engaged in the design, manufacture and distribution of engineered sealing systems to process industries and automotive and marine markets: the manufacture of engineered elastomer seals for the industrial, automotive and aerospace industries: the development o! special ized small diameter fluid carrying systems for the auto motive and refrigeration industries: and the production of hydraulic and actuation systems, turbine engine com ponents and propellers. Property: Co. maintains its head office in Abingdon. UK. In addition. Co. maintains over 400 manufacturing and customer service facilities in over 45 countries. Joint Venture: In Jan. 1995. C'o. formed a joint ven ture between its Dowty aerospace division and MessierBugatti. the landing gear division of the Snecmy Group (France). Co, will manage the equally owned company, to be named Messicr-Dowt\. and w-ill supply the chair man. chief executive and finance director. Subsidiaries (Wholly owned unless otherwise indicated) John Crane Inc. (United States) Flexibox Inc. (United States) John Crane Sealol Inc. (United Stales) Lips Propellers Inc. (United States) Lips USA Inc. (United States) Plenty Products Inc. (United States) Safentatic Inc. (United States) Stokes Vacuum Inc. (United States) Hibon Inc. (Canada) John Crane Canada Inc. (Canada) John Crane Argentina SA (Argentina) Flexibox do Brasil Industria e Commercio Ltda (Brazil) Industrias John Crane de Mexico SA de CV (Mexico) John Crane Caribe Ltd. (Puerto Rico) John Crane Venezuela CA (Venezuela) Sealol SA (Venezuela) John Crane UK Ltd AirpeJ Filtration Ltd Deep Sea Seals Ltd ETA Process Plant Ltd Flexibox Ltd Flexibox (Northern Ireland) Ltd Hick Hargreaves Ltd Lapmaster International Ltd Oil Plus Ltd Plastic Constructions Fabrications Ltd Plenty Ltd Bepac SC (Belgium) Hibon International NV (Belgium) SA John Crane Belgium NV (Belgium) John Crane Sigma as (Czech Republic) John Crane Ireland Ltd (Eire > Safematic Oy (Finland) Cyclam SA (France) Flexibox SA (France) Hibon SAS (France) John Crane France SA (France) Sealol France SA (France) Flexibox GmbH (Germany* John Crane GmbH (Germany s John Crane Sealol GmbH (Germany) Wilhelm Klein GmbH (Germanvt Flexibox SpA (Italy) John Crane Italia SpA (Italy) Flexibox BV (Netherlands) (51%) Golden Super BV (Netherlands) John Crane Holland BV (Netherlands) John Crane Marine Lips vof (Netherlands) Lips United BV (Netherlands) Flexibox Iberica SA (Spain) John Crane Ibercia SA (Spain) Flexibox AB (Sweden) John Crane Sverige AB (Sweden) John Crane (Switzerland) AG (Switzerland) Flexibox Pty Ltd (Australia) John Crane Australia Pty Ltd (Australia) Plenty Uniquip Pty Ltd (Australia) John Crane Tianjin Ltd (China (Peoples Rep. Of)M67%) John Crane Engineered Sealing Systems Ltd (India) (85%) PT John Crane Indonesia (Indonesia) (70%) Flexibox KK (Japan) Japan Marine Technologies Ltd (Japan) (91%) Chuwac Engineering Ptc Ltd (Singapore) (91%) Flexibox Ptc Ltd (Singapore) John Crane Singapore Pte Ltd (Singapore) Flexibox (Pty) Ltd (South Africa) John Crane Pty Ltd (South Africa) John Crane (Korea) Co Lid (Korea (South)) John Crane Taiwan Inc. (China (Rep. Of Taiwan)) Dowty O Rings Notrh America Inc. (United States) Forshedu Paimer-Chenard Inc. (United States) Forsheda Pipe Seal Corp (United Stales) Forsheda Shaft Seal Corp. (United States) Dowtv-Mexus Interational SA de CV (Mexico) Forsheda Ltd Woodville Polymer Engineering Ltd Forsheda A/S (Denmark) Forshea SA (France) Forsheda Engineered Seals GmbH (Germany) Forsheda GmbH (Germany) Forsheda Polypac SpA (Italy) Forsheda Sealing Pans SpA (Italy) (75%) Forsheda Stefa Sri (Italy i Forsheda (Malta) Ltd (Malta > forsheda Tecmold Ltd (Malta) Forsheda BV (Netherlands) Forsheda Stefa BV (Netherlands) forsheda AS (Sweden) Skega Seals AB (Sweden i Forsheda AG (Switzerland) Bundy Corp. (United States) S&H Fabricating and Engineering Inc. (United States) S&H Fabricating of Canada Co. (Canada) Titeflex Canada Ltd (Canada) VARI-FORM Inc. (Canada) Bundy Argentina SA (Argentina) TI Brasil Industiae e Commercio Ltda (Brazil) Bundy Colombia SA (Colombia) Aiunosa S de RL de CV (Mexico) Bundy Mexico SA (Mexico Bundy Venezolana CA (Venezuela) Bundy (UK) Ltd Bundy SA (Belgium) Bundy SRO (Czech Republic) Bundy Danmark A/S (Denmark) Bundy SNC (France) Bundy GmbH (Germany) Technoflow Tube-Systems GmbH (Germany) Bundy Kft (Hungary) Bundy SpA (Italy) TI Poland Sp zo o (Poland) Bundy SA (Spain) Tehcnoflow Iberica SA (Spain) Bundy AB (Sweden) Bundy Tubing Co (Australia) Pty Ltd (Australia) Foshan Hua Nan Bundy Tubing Co Ltd (China (Peoples Rep. Of)) (80%) ' , Hua Yan Bundv Tubing Corp (China (Peoples Rep. Off) (90%) ` Bundy India Ltd (India) (74%) Bundy Japan Ltd (Japan) Bundy Systems Ltd (Korea (South)) Walbro Dowty Aerospace Corp (United States) Dowty Decoto Inc. (United States) Ebtec Corp (United States) Hydraulic Units Inc. (United States) King Fifth Wheel Co. (United States) Lewis & Saunders Inc. (United States) Titeflex Corp. (United States) Tru-Form Inc. (United States) AB Precision (Poole) Ltd Aero and Industrial Services Lid Aero and Industrial Technology Ltd Aeronautical & General Instruments Ltd Aeroxtructures Hmble Ltd. Air-Log Ltd Beagle Aircraft Ltd Beagle Aircraft (Wokingham) Ltd C&F Millier Ltd Cambridge Vacuum Engineering Ltd Davall Geares Ltd Dowty Aerospace Gloucester Ltd Dowty Boulton Paul Ltd Hamble Computing Ltd Horstman Defence Systems Ltd Komak Manufacturing Ltd Motlart Universal Joints Ltd Specialised Elastomers Ltd Tl Reynolds Rings Ltd Pro Exc Im . Prof Prof Taxr Profi Mint Profi Earn p sh 3 Earn r sh-i E F>: reflect MOODY'SvINDUSTRIAL MANUAL 6885 Titetlex Europ SA (France) Consolidated Balance Sheet, as of (in thousands of AMERICAN DEPOSITARY RECEIPTS - (Sponsored) iioman Engineering Ltd British pounds): Each American Depositary Receipt represents two ordi Dowty Group PLC 6/30/1999 12/31/1998 nary shares of par L0.25. EIS Group PLC Tt & Dowty Pensions Ltd Assets: Intang assets-goodwil! . . 762,400 (revised) 524.100 TIDEWATER INC. Tl Corporate Services Ltd Net tang assets.............. 634.600 478.800 History: Incorporated in Delaware Feb. 7, 1956 as TI Group Inc, (United Slates) Associates & other Tidewater Marine Service Inc. Present name adopted on TI Group Insurance Ltd TI Holdings (Netherlands) BV (Netherlands) TI International Holdings Ltd Associated Companies (Wholly owned unless otherwise indicated) Flexibox Argentina SA < Argentina) (50%) John Crane (Japan) Inc (Japan) (49%) Directors Christopher Lewinton, Chmn. John M. Hignett, Non-Exec. Dep. Chmn. William J. Laule, Chief Exec. Martin D. Angle, Group Finance Dir. Nigel Broomfield Colin Chandler John M. Harris John Langston David P. Lillycrop Rudolf G. Mueller James L. Roe T. A. Welsh Lord Fanshawe of Richmond invests........................ Tot fixed assets.......... Stk ................................. Assets held for disp.... Debtors & prepay......... Cash Sc dep . 7............ Tot curr assets.............. Liabilities: Short-term borrow .... Other creditors.............. Net curr assets.............. Tot assets less curr liabil Loans & other borrow .. Other creditors.............. Creditors falling due after more than one yr Provs for liabil & charges....................... Net assets....................... Eq sh cap & sh premium Cap reserve ................... 41,400 1.438.400 348,100 8.800 706.900 177,400 1.241,200 128.500 687.000 425.700 1,864.100 895.700 8.700 904,400 223.800 735.900 283.500 447,400 11.100 1.014.000 303.600 21.800 587.500 173,100 1,086,000 128.300 559,600 398.100 1,412,100 557,500 14,700 572,200 233.400 606.500 188.900 412,100 Aug. 12, 1977. On Mar. I, 1968. Co. merged Twenty Grand Marine Service. Inc. by issuance of one new conv. cum. pfd. sh. for each 2 Twenty Grand com. shs. On July l, 1968. Co. acquired Sandair Corp. for 32.000 common shares. (Sold in 1985). In Mar. 1969, Co. acquired Hamer Hammer Services, Inc., Morgan City. La. for 48,000 com. shs. On Mar. 19. 1969. Co. acquired South Coast Gas Compression Company, Inc., Houston. In early 1970, Co. formed Pental Insurance Co. Ltd., wholly-owned insurance co. in Bermuda. On May 1, 1973. ail equipment and inventory of International Hammer Services. Inc. were sold and Co. discontinued all rental and operation of diesel hammer equipment. On Dec. 31. 1974. Co. acquired a fleet of 25 vessels from International Offshore Services sroup of Co.'s for $28.9 million. " On Sept. 29, 1976. Co, purchased all of the outstand Auditors: PricewaterhouseCoopers Secretary: David P. Lillycrop TI shhlders fds.............. Eq interests of minor shhiders..................... 730.900 5.000 601,000 ing stock of Universal Compression Services, Inc. for 79,990 shares of the Co.'s, common stock with a market 5.500 value of $1,490,225. which approximated the book No. of Employees: Jun. 3D, 1999, 40000 Address: Lamboum Court, Abingdon, Oxon. 0X14 1UH. United Kingdom Tel.: 44 01235 555570 Fax: 44 01235 555818 Web: www.tigroup.com Consolidated Income Account, years ended (in thousands of Bntish pounds): 6/30/(999 Turnover............ 1.247,600 12/31/1998 3(2/31/1997 (revised) (revised) 2,168,100 1.870.400 Tot shhlders fds............ 735.900 606,500 Dec. 31. 1998, L904.400.000 comprised of: (1) L895.700.000 loan and other borrowings (2) LH,700.000 other creditors. Capital Stock: 1. TI Group Pic (United Kingdom) ordinary; par oG.25. AUTH - 678.000.000 shs. OUTSTG - Jun. 30. 1999 481,200.000 shs: parol).25. STOCK SPLITS - Par changed from LI to L0.50 by 2- value of Universal's net assets. In July 1977. Co. completed the acquisition of Hil liard Oil & Gas Inc.. Menlo-Park, Cal. for 1.700.000 Co. com. shs. (Sold in 1985). On Feb. 1, 1978. Co. acquired Texcentric, Inc. of Houston, a manufacturer and distributor of compressor valves and valve assemblies. On Mar 10, 1978. Co. acquired Western Air Drilling Service Co., its subsidiaries and affiliates. On July 6. 1979. Tidewater Contractor Services, Inc., a wholly owned subsidiary of Co., acquired XPLO Less sh of jt Contin opers... Acquisitions .... 1,211.200 36.400 dr68,800 2.079.300 dr 166.000 1,670.000 for-1 split Apr. 1987; from L0.50 to L0.25 by 2-for-l split May 29. 1992. VOTING RIGHTS - Entitled to one vote per share. DIVIDENDS PAID - (years ended July 31. in%): Corp. for 15.000 common shares. In June 1981, Tidewater Compression Inc., a wholly owned subsidiary of Co. acquired R.L. Frailey Inc., Tulsa, for 350.000 common shores. Discont opers . .. 20.000 34.400 1953........ ..... 15.00 1954..............17.50 1955....... ..... 22.50 In 1987. Co. sold its interests off Indonesia to Hispa- Group turnover . . ! .247,600 2.099.300 ! .704,400 1956........ ..... 13.75 1957.............. 15.00 1958....... ..... 17.50 noil. the oil companv of Spain for approximately U.S. Costs, less other ...... 1959........ ..... 20.00 1960..............18.25 1961-63.........14.00 $20,000,000. ' 1.485.600 1964........ ..... 15.00 1965-67....... 16.00 1968....... ..... 16.50 In 1988, Co. acquired three utility vesseis form Bol- Oper profit fr coniin opers . . Oper profit fr acquisitions. . . Oper profit fr discont opers. . Oper profit......... Contin opers tr j( vent &. assoc . . Discont opers fr jt vent & assoc . . Jt ventures & associates .... Profit bef irU Sc exceptional items.............. Exceptional profit on disp of fixed Profit bef int... . Profit on ordinary activs bef except items . . Int....................... Profit on ordinary 146,900 1.000 147.900 800 800 148.700 i 48,700 18,300 254.300 1.500 255.800 18.000 7.700 9.500 265.300 ............ 265.300 ............ .......... 26.700 216,100 2,700 218.800 1.400 16.800 18.200 237.000 dr 1.900 235.100 cr 14.500 222,500 ............ 131969.... ..... 25.00 (years ended Dec. 31. in pencei: 1970........ ....18.000 1971............19.000 1973......... ....14.490 1974............ 15.982 1976........ ....18.760 1977............21.100 1979........ ....24.900 1980............15.000 1983-84... ....10.000 1985........... 13.000 1972....... .... 16.500 1975....... ....17.060 1978....... ....23.400 1981-82......... 7.500 1986....... ....16.000 ion L0.50 shs. after 2-for-l split): 1987........ ...10.000 1988.......... . 13.500 1989....... ....17.500 1990......... ....19.500 199!............20.500 (on fc.0.25 shs. after 2-for-l split): 1991........ ..... 10.25 1992.............. 10.70 1993....... ...... 11.25 1994........ ..... 12.00 1995.............. 13.10 1996....... ...... 14.50 1997........ ..... 15.90 1998............. 17.20 01999.... ....... 5.80 17 mos. to Dec. 31.06 mos. to June 30. . OPTIONS - Dec. 31, 1998, options outstanding. 17,493.363 shs. REGISTRARS - Llovds TSB Registrars. Birmingham. LISTED - London PRICE RANGE - tin pence): 1998 1997 19% 1995 1994 High ....................... 650 697 595.00 464.00 456.23 Low.......................... 300 430 453.00 325.00 340.00 After 2-for-l split, on L0.25 shs. CAPITAL HISTORY - On May 12, 1992. each of Co.'s unclassified shs. of L0.50 each in the authorized share inger Machine Shop & Shipyard Inc. and two of its affiliated companies for 168.000 common shares. In 1988. Co. acquired four vessels from the Maritime Administration for S5.000.000. On Jan. 15, 1992. Co. acquired all the outstanding stock of Zapata Gulf Marine Corp. for 23.786.000 shs. of Co.'s com. stk. In Apr. 1992. Co.'s air compression division. TideAir Inc. of Houston, purchased the 26 unit fleet of oilfree air compressors of Aimetics Engineering Co. of Phoenix, Ariz. On Mar. 31. 1993. Co. sold its l(Y7c interest in Marine Transportation Services Sea-Barge Group. Inc, to a group of investors including S.E.L. Maduro (Florida) Inc,, one of the present owners. The purchase price was not disclosed, i - On Aug. 2. 1993. Co.'s compression division. Tide water Compression Service. Inc., acquired 139 natural gas compressors in two separate purchases. In one trans action. Co. acquired the 26 unit gas compressor fleet of Allison Production Services. Inc. of Santa Fe. Tex. In a separate transaction. Co. acquired the 113 unit natural gas compressor fleet of BJC Operating Co., Inc. of Shreveport. La. The purchase prices were not disclosed. On Oct. 1. 1994, Co.'s compression division. Tidewa activs bef except items . . Profit bef taxation Taxation.............. Profit on ordinary activities after taxation......... Minor interests . . Profit for the finl yr.................. Dividends......... 130.400 40,400 90.000 200 89.800 29.000 ............ 238,600 74.000 164.600 400 164,200 82.600 dr 1.900 220.600 68.800 151.800 1.300 150.500 76.000 capital were converted into and redesignated as one ord. shs. of L0.50. SUBSCRIPTION RIGHTS - In Sept. 1977. Co. announced rights offering to holders of registered ordi nary stock at a price of 350p per share on the basis for each one held. Holders of ADR's were not available to participate in the offering. 2. TI Group Pic (United Kingdom) American Depositary Receipts; no par. ter Compression Service Inc., acquired the assets of Brazos Gas Compressing Co., a subsidiary of Mitchell Energy & Development Corp.. for $35,000,000. The acquisition includes 370 natural gas compressors. On Dec. 2. 1994. Co. acquired the natural gas com pression assets of Halliburton Co. (Dallas. TX) for $205 million. On Mar. 13. 1996. Co, acquired Hombeck Offshore Services. Inc. Under the terms of the agreement, the merger was accounted for as a pooling-of-interests and structured as a tax free exchange, with each Hombeck Common shares thousands ot`: Retain profit . . 60.800 81,600 74.500 Avg ordinary shares outstg 493,400 478.900 476,700 Avg ordinary shares outstgfullv dil 479.000 479,700 Yr end ordinary shares outstg . 481,200 478,800 Earns per ord sh bef amort &. except items . $0.02 $34.30 $32.00 Earns per ord sh after exceptional items........... .......... dr$0.40 Earn per sh on profit for fml r n.............................................. Earn per ordinary sh bef except . . SO.02 $34,30 $34.30 $31.60 ............ Earn per ordinary xh-fully diluted ............ $34.30 $31.40 Uj For 6 months due to fiscal year end change ^Restated to ^fiect the adoption of FRS10 DIVIDENDS PAID - (in US$): 1959......... ..... 0.322 31960.... .... 0.295 1961...... ...... 0.220 1962........ ..... 0.211 1963............. 0.220 1964...... .......0.236 1965........ ..... 0.244 1966........ .... 0.294 1967...... ...... 0.331 1968........ ..... 0.313 1969........ .... 0.304 1970...... .......0.345 1971........ ......0.375 1972........ .... 0.211 1973...... ...... 0.346 1974........ .....0.476 1975.... .... 0.550 1976...... ...... 0.288 01977.... ..... 0.605 1978........ .... 0.403 1979...... ...... 0.501 1980........ ..... 0.583 1981........ .... 0.098 1982...... ...... 0.142 1983........ ..... 0.124 1984........ .....0.179 1985...... 1986........ ......0.227 01987.... .... 0.237 1988...... ...... 0.208 1989........ ......0.249 1990........ .....0.140 1991...... ...... 0.391 1992........ ......0.422 1993........ ..... 0.355 1994...... ...... 0.377 J995........ ..... 0.413 1996......... .... 0.442 1997...... ...... 0.502 1998........ ..... 0.540 3l9.... ....0.371 Qj Plus $5,832 proceeds from sale of rights. loci. $0,205 proceeds from sale of rights. 0 Inci. S0.279 proceeds from sale of rights. GO Incl. SO. 181 paid prior to 2-for-I splitin 1987. GQTo Oct. 20. DEPOSITARY - Citibank N.A.. New York. LISTED - OTC : TIGU Y PRICE RANGE - 1998 High ....................... Low N.A. share being converted into .628 of a Co. share or a total of approx. 8.475.000 Co. shares. On May 31.1996. Co. acquired for $ 12.4 million cash the remaining 50.equity interest in 22 of 29 safety/standby vessels previously owned and operated by joint-venture companies in the North Sea. On May 16,1997. Co. acquired all of the shares of O.I.L, Ltd. from Ocean Group pic in exchange fora cash payment of 328 million pounds sterling or approx. $534 million. On Feb. 20. 1998, Co. completed the sale of its natural gas compression business. Tidewater Compression Ser vice Inc. to Castle Harlan Partners III. LP. In July 1999. Co. sold all of Us safety/standby vessels for approx. $40 million in an all cash transaction. Business: Co. conducts its operations through wholly-owned subsidiaries and joint ventures. Co. pro vides services and equipment to the offshore energy industry through the operation of the fleet of offshore service vessels. Co. operates services supporting ail phases of off shore exploration, development and production, includ ing: towing of and anchor-handling of mobile drilling